INFORMATION #1 04-11-2005
infO ~mrt.nON
MEMORANDUM
TO:
Mayor and City Council
FROM:
Stephen Rohlf, Building and Environmental Administrator
DATE:
April 11, 2005
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SUBJECT: Great River Energy Peaking Plant
Great River Energy (GRE) plans to build two natural gas-fired combustion turbine
Peaking Plants. The first will be built in 2006 in Cambridge, Minnesota and the other in
2009. GRE's property in Elk River is proposed to be the site of the 2009 Peaking Plant.
Attached is a letter from Mark Strohfus of GRE that explains the permitting process for
their Cambridge site. As part of that permitting process, GRE is required to have an
alternate site, which is Elk River. Although they are not proposing the first Peaking
Plant be located here, they will be hosting a public hearing on this issue because it is their
alternate site. This public hearing will take place from 6:00 PM until 9:00 PM on
Wednesday, April 20, 2005 at Elk River Parks and Recreation, 1104 Lions Park Drive.
{) .~
GREAT RIVER
ENE R G Y@
17845 East Highway 10 . P.O. Box 800 . Elk River, Minnesota 55330-0800 . 763-441-3121 . Fax 763-241-2366
March 28, 2005 WO #51611
Steven Rohlf
City of Elk River Bldg & Env. Administrator
13065 Orono Pkwy
Elk River, MN 55330
SUBJECT: Proposed Great River Energy Combustion Turbine and Transmission Line Upgrades
Great River Energy (GRE) is proposing to construct a natural gas-fired combustion turbine at its
existing Cambridge Peaking Plant site to ensure sufficient and reliable electric service to its
members' customers, including those of East Central Energy. Under Minnesota Rules 4400, GRE is
required to obtain a site permit from the Minnesota Environmental Quality Board (EQB). An
Environmental Assessment (EA) with Scoping is also required under federal regulations (Code of
Federal Regulations Part 1794) where the Rural Utilities Service (RUS) serves as the lead agency.
GRE submitted an Alternatives Evaluation and Site Selection Study to the RUS on February 28,
2005, which initiates the EA process.
GRE also applied to the Minnesota Public Utilities Commission for a Certificate of Need for the
project on February 28, 2005, which isa state permit confirming that the construction of the power
plant is in the public interest.
GRE submitted a site permit application to the EQB on March 11, 2005 requesting that the
application be processed under the alternative process outlined in Minnesota Rules 4400.2000 to
4400.2950. The EQB deemed the application complete on March 14, 2005.
Project Description
The project consists of constructing a natural gas-fired, simple cycle combustion turbine power
generation facility at GRE's existing Cambridge Peaking Plant site located at 2438 349th Avenue NE,
Cambridge Township, in Isanti County, Minnesota (see enclosed figure). Total electrical output from
the facility is expected to range from 150 megawatts (MW) to 190 MW depending upon operating
conditions.
The project will also require the upgrade of approximately 47 miles of existing 69-kilovolt (kV)
transmission lines to state-of-the-art 69-kV design (see enclosed map)
Summary of the EQB Site Permit Process
The EQB is required to prepare an EA of the generating plant and to make a permit decision within
six months of accepting the site permit application. As part of its process, the EQB will hold a public
meeting about the project within 60 days of acceptance of the application. This meeting will also
serve as the scoping meeting for the project in which the public will have an opportunity to comment
on the scope of the EA. The scoping meeting for the EQB site permit and the RUS Environmental
Assessment can be held as one meeting. The EQB will hold a public hearing on the application
once the EA has been completed.
www.GreatRiverEnergy.com
A Touchstone Energy@ Cooperative ~~
-
Cambridge Station
March 28, 2005
Page Two
Summary of the RUS Environmental Assessment Process
The RUS is required to complete an EA with Scoping for the generating plant and the associated
transmission facilities to enable the release of federal loan funds for the project. In addition to
evaluating the proposed site, the RUS rules require that an alternative site be proposed. Great River
Energy's Elk River campus at 17845 East Highway 10, Elk River, Minnesota is the proposed
alternative site. The process requires that a scoping meeting be held in which the public has an
opportunity to comment on the scope of the EA. The scoping meeting for the EQB Site permit and
the RUS Environmental Assessment can be held as one meeting. The RUS will prepare an
Environmental Report on the project and make a determination if it warrants a Finding of No
Significant Impact.
Meeting Information
The EQB will conduct a public information meeting on Tuesday, April 19, 2005 from 6:00 p.m. to
9:00 p.m. at the Community Hall Building at the Isanti County Fairgrounds. The purpose of the
meeting is to provide information to the public about the proposed project, to answer questions and
to allow the public an opportunity to suggest alternatives and impacts that should be considered
during preparation of the environmental review document. Written comments must be submitted no
later than April 28, 2005.
The RUS will conduct 2 scoping meetings in Open House forum on Tuesday, April 19, 2005 from
6:00 p.m. to 9:00 p.m. at the Community Hall Building at the Isanti County Fairgrounds and on
Wednesday, April 20, 2005 from 6:00 p.m. to 9:00 p.m. at Elk River Parks & Recreation, 1104 Lions
Park Drive NW in Elk River, Minnesota.
Where to Learn More
For more information about the EQB site permit application or to have your name included on the
EQB contact list for this project, contact Bill Storm, Minnesota Environmental Quality Board, 658
Cedar St, St. Paul, MN 55155 or call 651-296-9535. TTY: Minnesota Relay Service 800-627-3529,
and ask for Minnesota Planning.
For more information about the RUS Environmental Assessment, contact Nurul Islam,
Environmental Protection Specialist, Rural Utilities Service, Engineering and Environmental Staff,
1400 Independence Avenue, SW, Washington, DC 20250-1571, telephone 202-720-1414, FAX:
202-720-0820, e-mail: Nurul.lslam@usda.Qov.
Current information about the project and copies of project documents are available online at
htto:llwww.areatriverenerav.com/oroiects/olants/oroiolants.html. Project information may also be
obtained by calling 763-241-2200 or you may call me at 1-800-442-3013 ext. 2491 or 763-241-2491.
Sincerely,
GREAT RIVER ENERGY
-rn~~/yt.
Mark Strohfus
Environmental Project Leader
Enclosures
CC: Henry Fischer, East Central Energy - w/encls.
TRANSMISSION FACILITIES
In conjunction with the construction of Cambridge
Station, area transmission lines will be rebuilt and
upgraded to modern standards. The project will include
improvements to approximately 47 miles of existing 69-kV
transmission line in the area. The voltage of these lines
will remain the same, and the improvements should
require no new line corridors. Improvements may include
changing the poles, upgrading the wire size and adding
lightning protection to improve the overall operation and
reliability of the Cambridge area transmission system.
The photo above shows a
typical existing
transmission line. The
photo to the right depicts
a typical upgraded
transmission line for the
prQject.
ABOUT THE LOCATION
The Cambridge site was selected for several
reasons in addition to its close proximity to a fuel supply.
An existing Great River Energy peaking facility is already
located at the site, making for efficient operations. By
expanding the existing substation on the site, regional and
local area transmission systems will benefit without the
construction of new transmission lines.
The project also will include water storage
equipment, a generator step-up transformer and
modifications to Great River Energy's existing shop
building.
Cambridge Station will be constructed on land
Great River Energy currently owns. Additional land may be
purchased to support construction activities and to ensure
that future development by others is maintained at
an appropriate distance from the facility. The natural gas
supplier for the plant will acquire easements for the
installation of 0.5 to 1 mile of underground gas line that
will run from the proposed generating station south to an
existing gas line.
ABOUT GREAT RIVER ENERGY
Great River Energy is a not-for-profit wholesale
electric cooperative, serving 28 distribution cooperatives in
Minnesota and covering 60 percent of the state,
geographically. It is the second largest power supplier in
Minnesota.
Over the last 10 years, Great River Energy's peak
demand has grown an average of 5 percent. By comparison,
national electric usage grew at just over 2 percent per year,
according to the Energy Information Administration.
For more information about this project and Great
River Energy, visit: IfMIW.GreatRiverEnergy.com or call 763-
241-2200.
Cambridge Station will be located acfjacent to an existing
peaking plant owned by Great River Energy.
Great River Energy's service area stretches
across Minnesota, including many areas that consistently
have been leaders in job growth and energy usage. This
growth is expected to continue as will the need for
additional electric generating capacity.
To meet this need, Great River
Energy plans to
construct
~ Cambridge
~ Station, an
. approximately
170-megawatt natural
gas-fired power gener-
ation facility in Cam-
bridge Township, Isanti
County. The plant will
be built on a site already
owned by Great River
Energy and adjacent to
an existing, smaller
generating unit.
Upon approvals
from state and
federal authorities,
construction will begin in spring 2006. The facility will
start providing peaking power in spring 2007 to Great
River Energy's 28 member cooperatives, including East
Central Energy of Braham.
The facility will consist of a simple-cycle
combustion turbine. The fuel for the facility will be
natural gas, chosen for its low air emissions and ready
availability from a nearby pipeline. The fuel supply will
be provided on an interruptible basis, meaning the needs
of other, higher priority uses, such as home heating,
must be satisfied first.
Cambridge Station normally will be operated
during times of peak electrical demand, which generally
occur during periods of very high or very low
temperatures. In addition, Great River Energy
17845 East Highway 10
P.O. Box 800
Elk River, MN 55330-0800
Phone: 763-241-2200
www.GreatRiverEnergy.com
Building a peaking power plant
occasionally may be called upon to operate the facility to
support voltage on the area's transmission grid or for other
grid support functions. Great River Energy anticipates
Cambridge Station's total operating time will average 500
to 1,000 hours a year. The majority will occur during
summer periods of significant air conditioner use.
Great River Energy plans to hire two to three full-
time employees to perform maintenance tasks and
monitor operations at the site. This staff will be
supplemented with operators from other locations during
periods of extended hot or cold weather.
Cambridge Station and the associated natural gas
line and transmission upgrades for the facility will
generate approximately $350,000 a year in property taxes
in Isanti County.
Cambridge Station, which will generate about
170 megawatts of electricity, will resemble the
generating unit pictured above.
GREAT RIVE~!.~~r.
1/1 9/05